This work presents a MEMS displacement sensor based on the conductive heat transfer of a resistively heated silicon structure towards an actuated stage parallel to the structure. This differential sensor can be easily incorporated into a silicon-on-insulator-based process, and fabricated within the same mask as electrostatic actuators and flexure-based stages. We discuss a lumped capacitance model to optimize the sensor sensitivity as a function of the doping concentration, the operating temperature, the heater length and width. We demonstrate various sensor designs. The typical sensor resolution is 2 nm within a bandwidth of 25 Hz at a full scale range of 110 μm.